Russia and Saudi Arabia did not agree on oil while Iran keeps increasing production

According to the statement made in Singapore by the Director for International Relations of the National Iranian Oil Company (NIOC), the current level of oil production in Iran is 3.8 mln barrels per day.

Iran is not going to stop, and plans to increase production volumes of heavy grades of oil. Earlier in June, Iranian Oil Minister Bijan Namdar Zanganeh in an interview has already reported that thanks to deposits in West Karun near the border with Iraq, within 5 years the country might increase production by 700 thousand barrels per day.

Iran expects good demand for oil of heavy grades by the new refineries in Asia, which are able to process it. Within 2 – 3 years, Iran can increase production to 5 million barrels a day, and increase the volume to 4 million barrels per day in short term.

Such statements are in sharp contrast with the hopes for an agreement to freeze the OPEC production. During the summit in China, the meeting of the Deputy Prince of Saudi Arabia and President Vladimir Putin of Russia has led to a message on joint work to stabilize prices, but the specific details of the work were not published, which disappointed the market participants.

The day before the meeting in China, which was held on Sunday, Vladimir Putin said that he would like OPEC and Russia to agree on freezing the production. But, apparently, nothing concrete has been signed, and it is frustrating investors.